Fundamentally Strong but Undervalued Stocks in India in 2024

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Investors want to invest in the stock market except for high returns in the future. But they are confused about where to invest.  One best strategies that many investors focus on is fundamentally strong but undervalued stocks. In this blog post, we listed 10 fundamentally strong but undervalued stocks for you.

What are fundamentally strong but undervalued stocks?

Fundamentally strong but undervalued stocks are those that possess strong fundamentals but are trading at a price lower than their intrinsic values.

Chamanlal Setia Exports Ltd.

About Chamanlal Setia Exports Ltd:

Company: Chamanlal Setia Exports Ltd (CLSEL)

Industry: Rice Milling and Export

Founded: 1974

Headquarters: Amritsar, Punjab, India

Website: https://maharanirice.in/

Chamanlal Setia Exports Ltd. Is a consumer food sector company listed in both BSE and NSE engaged in the production of Basmati rice, Non basmati rice, and Special rice under the brand name Maharani. The company also introduced new products like diabetic and organic rice to expand its market reach.

Market Cap1258.68 Cr.
PE9.67
PB2.05
Dividend Yield0.41%
Book Value118.88
Cash45.42 Cr.
Debt120.59 Cr.
EPS25.15
Sales Growth48.78%
ROE22.84%
ROCE27.96%
Profit Growth81.09%
Fundamentals of Chamanlal Setia Exports Ltd.

The market capitalization of the company is 1258.68 Cr., Total revenue is ₹ 1,112.83 Cr. And the profit after tax is 48.48 Cr.

Strengths

 For the past 3 years, the company has shown a good profit growth of 30.89%.

For the past 3 years, the company has shown a good revenue growth of 20.26%

The company has been maintaining a healthy ROE of 22.84%. 

For the past 3 years, the Company has been maintaining a healthy ROCE of 25.59%.

The company has a healthy Interest coverage ratio of 22.59.

The company has a healthy liquidity position with a current ratio of 4.27.

The company has a high promoter holding of 73.86%.

Weakness

The company has no Weaknesses as of now.

CLSEL’s financial position is a positive picture of a well-managed company with strong financial health, good liquidity, and efficient operations.

Crest Ventures Ltd.

About Crest Ventures Ltd.

Company: Crest Ventures Ltd

Industry: Non-Banking Finance Company (NBFC)

Founded: 1982

Headquarters: Mumbai, India

Website: crest.co.in

Crest Ventures Ltd. Is a Finance sector company listed in both BSE and NSE engaged in real estate, financial services, and investments.

Market Cap2260.23 Cr.
PE29.66
PB1.41
Dividend Yield0.21%
Book Value335.92
Operating Revenue815.61 Cr.
Net profit594.81 Cr.
EPS19.34
Sales Growth2656.72
ROE102.40%
ROCE112.05%
Profit Growth2165.64%
Fundamentals of crest venture Ltd.

The market capitalization of the company is 2260.23 Cr., total revenue of the company is 1132.16 Cr. And net profit after tax is 84.40 Cr.

Strengths

The company has maintained a healthy ROA of 21.43% in the last 3 years.

The company has a healthy ROE of 28.87%

The company has healthy ROCE of ROCE over the last 3 years.

The company has 185.64% of CAGR over the past 3 years.

The company delivered 362.77% of profit growth over the past 3 years.

Weakness

The company has no Weaknesses as of now.

CREST is a financially sound and highly profitable company with strong liquidity and moderate debt levels.

Godawari Power & Ispat Ltd.

Godawari Power & Ispat Ltd. GPIL is a steel & iron products sector company listed both in BSE and NSE and engaged in the production of Iron ore pellets, sponge iron, steel billets, ferro alloys, steel wires, and power.

About Godawari Power & Ispat Ltd.

Company: Godawari Power & Ispat Ltd (GPIL)

Industry: Steel

Founded: 1999

Headquarters: Raipur, Chhattisgarh, India

Website: hpslindia.com

Market Cap10100.98 Cr.
PE29.04
PB2.58
Dividend Yield0.51%
Book Value302.44
Cash650.45 Cr.
Debt142.96 Cr.
EPS66.21
Sales Growth4.14%
ROE20.32%
ROCE31.33%
Profit Growth16.97%
Fundamentals of Godawari Power & Ispat Ltd.

Strengths

For the past 3 years, the company has shown a good profit growth of 87.34%.

For the past 3 years, the company has shown a good revenue growth of 23.97%.

The company has significantly decreased its debt.

Over the past 3 years company has been maintaining a healthy ROE of 40.03%.

Over the past 3 years, the Company has been maintaining a healthy ROCE of 44.66%.

Weakness

The company has no weakness as of now.

GPIL is a financially strong and profitable company with good liquidity and no debt.

Greenpanel Industries Ltd.

About Greenpanel Industries Ltd

Industry: Wood panel manufacturing

Founded: 1999

Headquarters: Kolkata, India

Website: https://www.greenpanel.com/ 

Greenpanel Industries Ltd. Is a wood & wood products sector company listed in both BSE and NSE is engaged in the manufacturing of Medium-density fiberboard (MDF), plywood, veneers, flooring, and doors. The company has more than 3000 outlets throughout India.

The company uses 100% renewable Agro forestry wood in its MDF products, which can help to reduce deforestation.

Market Cap4662.29 Cr.
PE29.22
PB3.57
Dividend Yield0.39.%
Book Value106.57
Cash855.81 Cr.
Debt190.43 Cr.
EPS13.95
Sales Growth9.75 %
ROE21.02%
ROCE25.21%
Profit Growth-1.46 %
Fundamentals of Greenpanel Industries Ltd.

Strengths

Over the past 3 years, the company has shown a good profit growth of 142.13%.

Over the past 3 years, the company has shown a good revenue growth of 27.52%.

The company has significantly decreased its debt.

Over the past 3 years, the company has been maintaining a healthy ROCE of 21.87%.

Weakness

Till now the company had no weakness.

GREEN PANEL is a well-managed company with strong financial health, good liquidity, and low debt.

Panama Petrochem Ltd.

About Panama Petrochem Ltd.

Industry: Petroleum specialty products

Founded: 1982

Headquarters: Mumbai, Maharashtra, India

Website: https://panamapetro.com/

Panama Petrochem Ltd. Is a Lubricant sector company listed in both BSE and NSE, engaged in the manufacture of White oil/liquid paraffin oil, petroleum jelly, transformer oil, rubber process oil, industrial oils and greases, drilling fluids, and others.

The has a strong presence in India as well as exports its products to over 50 countries around the world.

The products of the company are used in a variety of applications, including inks and resins, printing, textiles, rubber, pharmaceuticals, cosmetics, power, cables, and other industrial purposes.

Market Cap2169.30 Cr.
PE16.85
PB2.69
Dividend Yield2.23 %
Book Value138.25
Cash169.26 Cr.
Debt0 Cr.
EPS21.28
Sales Growth10.96 %
ROE15.97 %
ROCE25.21 %
Profit Growth5.35 %
Fundamentals of Panama Petrochem Ltd.

Strengths

Over the past 3 years, the company has shown a good profit growth of 114.78%.

Over the past 3 years, the company has shown a good revenue growth of 28.06%.

Over the past 3 years, the company has been maintaining a healthy ROE of 27.82%.

Over the past 3 years, the company has been maintaining a healthy ROCE of 38.26%.

The company has zero debt.

Weakness

there is no weakness in the company till now.

PAPT is a financially strong and well-managed company with strong liquidity, zero debt, and good profitability.

Rashtriya Chemicals & Fertilizers Ltd.

About RCF:

Industry: Fertilizer and chemical manufacturing

Founded: 1978

Headquarters: Mumbai, Maharashtra, India

Website: https://www.rcfltd.com/

Rashtriya Chemicals & Fertilizers Ltd (RCF) is a fertilizers public sector company listed in both BSE and NSE, engaged in the manufacturing of Urea, complex fertilizers, bio-fertilizers, micro-nutrients, industrial chemicals (methanol, ammonia, nitric acid, etc.)

The company is involved in promoting the use of bio-fertilizers and adopting environment-friendly technologies.

Market Cap8236.70 Cr.
PE27.32
PB1.75
Dividend Yield3.55 %
Book Value85.67
Cash64.53 Cr.
Debt1862.65 Cr.
EPS5.47
Sales Growth67.43 %
ROE6.39 %
ROCE14.17%
Profit Growth37.31%
Fundamentals Rashtriya Chemicals & Fertilizers Ltd.

RCF is a financially stable company with moderate liquidity and debt levels. Profitability is decent, and returns on capital are good.

 Strengths

Over the past 3 years, the company has shown a good profit growth of 66.87%.

Over the past 3 years, the company has shown a good revenue growth of 30.29%.

TGV Sraac Ltd.

About TGV Sraac Ltd.

Company: TGV SRAAC LIMITED (formerly Sree Rayalaseema Alkalies and Allied Chemicals Ltd.)

Founded: 1981

Headquarters: Kurnool, Andhra Pradesh, India

Industry: Chemicals

Website: https://www.tgvgroup.com/ 

TGV SRAAC Ltd is the flagship company of the TGV Group a chemical sector company listed both in BSE and NSE, and Engaged in the production of Chlor-Alkali products in India and also manufactures Castor Derivatives and Fatty Acids.

Market Cap1089.10 Cr.
PE12.78
PB1.00
Dividend Yield 0 %
Book Value102.81
Cash 62.38 Cr.
Debt 214.69 Cr.
EPS7.96
Sales Growth52.47 %
ROE7.85 %
ROCE38.65 %
Profit Growth169.14 %
Fundamentals of TGV Sraac Ltd.

Strengths

 Over the past 3 years, the company has shown a good profit growth of 96.07.

 Over the past 3 years, the company has shown a good revenue growth of 30.76%.

The company has decreased its debt by 225.97 Cr.

Over the past 3 years, the company has been maintaining a healthy ROE of 21.85%.

Over the past 3 years, the company has been maintaining a healthy ROCE of 23.25%.

Weakness

The company has no weakness till now.

TGV Sraac Ltd. shows improving profitability, low financial leverage, and potential undervaluation based on key financial ratios.

Vardhman Special Steels Ltd.

About Vardhman Special Steels Ltd.

Company: Vardhman Special Steels Limited (VSSL)

Industry: Special and Alloy Steel Manufacturing

Founded: 1973

Headquarters: Ludhiana, Punjab, India

Website: https://www.vardhman.com/

Vardhman Special Steels Limited (VSSL) is a capital goods sector company listed in both BSE and NSE. The company engaged in the production of Hot rolled bars, Bright Bars, and Special and Alloy steels for diverse applications.

Market Cap1701.70 Cr.
PE23.42
PB2.56
Dividend Yield 0.96 %
Book Value84.12
Cash 9.61 Cr.
Debt 142.92 Cr.
EPS8.92
Sales Growth26.78 %
ROE10.93%
ROCE20.25 %
Profit Growth-0.30 %
Fundamentals of Vardhman Special Steels Ltd.

Strengths

Over the past 3 years, the company has shown a good profit growth of 210.98%.

Over the past 3 years, the company has shown a good revenue growth of 27.04%.

Weakness

Till now the company has no Weakness.

VSSL is showing impressive profitability, strong solvency, and adequate liquidity based on key financial ratios. It has been consistently growing its profits and margins, which indicates good financial health.

Andhra Paper Ltd.

About Andhra Paper Ltd.

Industry: Paper Manufacturing

Founded: 1964

Headquarters: Rajahmundry, Andhra Pradesh, India

Website: https://www.andhrapaper.com/

Employees: Around 2,500

Andhra Paper Ltd. Is a paper and paper products sector company listed in both BSE and NSE. The company is one of the largest integrated paper and pulp manufacturers in India. The company engaged in the production of writing and printing papers, copier papers, and specialty papers.

Market Cap586.18 Cr.
PE4.77
PB1.24
Dividend Yield 0.96 %
Book Value462.72
Cash47.37 Cr.
Debt47.40 Cr.
EPS114.46
Sales Growth51.98 %
ROE25.90 %
ROCE51.07 %
Profit Growth273.90 %
Fundamentals of Andhra Paper Ltd.

Strengths

Over the past 3 years, the company has shown a good profit growth of 34.88%.

Over the past 3 years, the company has shown a good revenue growth of 18.22%.

Over the past 3 years, the company has been maintaining a healthy ROCE of 22.97%.

The company is almost debt-free.

Weakness

As of now, the company has no weaknesses.

 Based on the fundamentals Andhra Paper Ltd shows improving profitability, low financial leverage, and potential undervaluation

Shreyans Industries Ltd.

About Shreyans Industries Ltd.

Company: Shreyans Industries Ltd.

Industry: Paper and Textiles

Founded: 1979

Headquarters: Ludhiana, Punjab, India

Website: https://shreyansgroup.com/index.php/front/home

Shreyans Industries Ltd. is a paper and paper products sector company listed in both BSE and NSE. The company engaged in paper production and textiles production. Major products of the company are, Writing and printing paper, notebooks, diaries, Cotton yarn, knitted fabrics, etc.

Market Cap348.60 Cr.
PE3.61
PB1.01
Dividend Yield 1.98 %
Book Value265.59
Cash5.62 Cr.
Debt40.63 Cr.
EPS69.91
Sales Growth48.10 %
ROE27.91 %
ROCE31.27 %
Profit Growth637.81 %
Fundamentals Shreyans Industries Ltd.

Strengths

Over the past 3 years, the company has shown a good profit growth of 31.97%.

Over the past 3 years, The company has shown a good revenue growth of 17.01%.

The company has decreased its debt by 18.97 Cr.

Shreyans Industries Ltd. shows moderate profitability, strong liquidity and solvency, and potential undervaluation based on its fundamentals.

Read more: Most Important Financial Ratios

 Conclusion:

Investing in fundamentally strong but undervalued stocks can reward more to those who are looking to build wealth. Investing in these companies with solid fundamentals trading at a discounted price can generate returns while minimizing downside risk.

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